Australia regulator halts Angas Securities private credit fund sales
The Australian Securities and Investments Commission issued interim stop orders over concerns regarding risk disclosures and exposure to the collapsed Bathla Group.
The Australian Securities and Investments Commission (ASIC) has stopped Adelaide-based Angas Securities Ltd. from selling two managed investment schemes, according to a report by Mint.
The interim stop orders prevent the firm from providing or transferring interests in the Angas Prime Income Fund and the Angas Direct Mortgage Fund.
ASIC stated it is concerned that investors may not have been sufficiently informed about the financial position of Angas Securities and the associated risks.
The regulator specifically noted concerns regarding disclosures in the Angas Prime Income Fund involving its exposure to the collapsed Bathla Group.
Sydney property developer Bathla entered insolvency in August with approximately A$3.4 billion in debt, much of which is owed to private credit funds.
ASIC commissioner Simone Constant said investors require clear and timely information about risks, especially when private credit loans face difficulties. She added that the regulator will continue its scrutiny and act swiftly when investors are not given the full picture.
Angas Securities held about A$114 million in investor funds at the end of June, according to ASIC. The regulator is expected to publish an update on private credit surveillance on Nov. 10.